Equity

Wall Street pulled back as traders took profits after a strong five-day winning streak that had pushed major indexes back near record highs, following a sharp early-November selloff and a powerful relief rally. Sentiment had been boosted by dovish signals from Federal Reserve officials and market expectations'reflected in futures pricing'that there is roughly an 88% chance of another 25-basis-point rate cut at next week's policy meeting, but upcoming data kept risk appetite cautious.

At the same time, nerves were reinforced by softer macro data, as the ISM Manufacturing PMI unexpectedly dipped to 48.2 in November from 48.7 in October, remaining in contraction territory and undershooting economist forecasts of about 49.0. This mix of profit-taking after a rally, high hopes for further easing, and a weaker manufacturing print has left traders on edge, watching incoming U.S. data closely for any sign that could shift the Fed's stance or derail the recent recovery in equities.

Utilities stocks significantly moved downwards, dragging the Dow Jones Utility Average down by 2.3% to its lowest closing level in two months. Biotechnology stocks were considerably weak, as reflected by the 2.1% slump by the NYSE Arca Biotechnology Index. Networking, healthcare and computer hardware stocks too notably moved to the downside while energy stocks bucked the downtrend amid a sharp increase by the price of crude oil.

Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index tumbled by 1.9%, while China's Shanghai Composite Index climbed by 0.7%. the major European markets all moved downwards while the German DAX Index slumped by 1.0%, the French CAC 40 Index fell by 0.3% and the U.K.'s FTSE 100 Index dipped by 0.2%.

In the bond market, treasuries moved notably lower, extending the pullback seen during last Friday's session. Subsequently, the yield on the benchmark ten-year note which moves opposite of its price, jumped 7.9 bps to 4.09%.

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